As month-end approached, suppliers took the initiative to lower prices and sell off their spot cargo, with spot premiums falling sharply [SMM spot copper in South China]

SMM May 28 News:

Today, spot prices of #1 copper cathode in Guangdong against the front-month contract were reported at premiums of 80 yuan/mt to 160 yuan/mt, with an average premium of 120 yuan/mt, down 100 yuan/mt from the previous trading day. SX-EW copper was reported at premiums of 20 yuan/mt to 40 yuan/mt, with an average premium of 30 yuan/mt, down 100 yuan/mt from the previous trading day. The average price of #1 copper cathode in Guangdong was 78,515 yuan/mt, down 45 yuan/mt from the previous trading day, while the average price of SX-EW copper was 78,425 yuan/mt, down 45 yuan/mt from the previous trading day.

Spot Market: Inventories in Guangdong continued to decline, hitting a new low and approaching the 10,000 mt threshold. Despite the continuous decline in inventories, it failed to curb the decline in premiums. This was due to the fact that as the month-end approached, suppliers had a need to liquidate their holdings and actively reduced prices to sell. Additionally, downstream demand during the Dragon Boat Festival was average, with weak stockpiling intentions and a reluctance to accept high premiums. As of 11 a.m., high-quality copper against the front-month contract was reported at 160 yuan/mt, standard-quality copper at a premium of 80 yuan/mt, and SX-EW copper at a premium of 30 yuan/mt.

Overall, as the month-end approached, suppliers took the initiative to reduce prices and sell, leading to a significant decline in spot premiums.

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